Question

tonys gross pay for the month is $2,400. tonys deduction for federal income tax is based on a rate of 25%. tony has no voluntary deductions. tonys year - to - date pay is under the limit for oasdi. what is the amount of fica tax withheld from tonys pay? assume a fica—oasdi tax of 6.2% and fica—medicare tax of 1.45%. do not round any intermediate calculations and round final answer to the nearest cent.

a. $344.40
b. $783.60
c. $183.60
d. $600.00

Explanation:

Step1: Identify FICA tax rates

FICA tax has two parts: OASDI (6.2%) and Medicare (1.45%). So total FICA rate is \( 6.2\% + 1.45\% = 7.65\% \).

Step2: Calculate FICA tax

Gross pay is $2400. FICA tax = Gross pay × FICA rate. So \( 2400\times0.0765 = 183.60 \).

Answer:

C. $183.60